How investing in good housing improves health and supports the NHS to save resources
Posted on 16 September 2026 by Michael Tornow
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This Scottish Housing Day, Michael Tornow, Senior Health Improvement Officer at Public Health Scotland, highlights how investing in good housing conditions is essential to preventing ill health, and by doing so, we can save the NHS vital resources.
Housing conditions can have a real impact on our physical and mental health.
A safe, warm, and affordable home provides the foundation we need to live well and support our wellbeing, whereas poor housing conditions can have the opposite effect. Cold indoor temperatures, the presence of damp and mould, disrepair and hazards can all contribute to poor health - including respiratory conditions, life-changing falls and, in some cases, death.
That is why it is so important that we see housing as more than simply a roof over our heads. It is a fundamental building block of good health that creates the conditions people need to live healthier, longer lives.
The cost of poor housing to NHS Scotland
This year the theme for the 'Scottish Housing Day' is focused on how housing supports good health. In 2021, Public Health Scotland (PHS) published Healthy Housing for Scotland, which brought together evidence on the vital role that housing plays in shaping our health and wellbeing.
In 2021, when we produced this report, we knew that poor quality housing contributed to health conditions which in turn places avoidable pressure on the NHS in Scotland. We also recognised the benefits that improvements to the quality of our housing can have on both our health and subsequent demand for NHS services. However, what was less clear at that time was the scale of avoidable treatment caused by poor housing and the annual cost to the NHS, as well as the level of investment that would be needed to improve poor-quality housing across Scotland.
To explore this further, we worked with the Scottish Futures Trust and commissioned researchers at the University of Glasgow to examine the evidence and estimate these costs.
What the research found
In their research Housing Quality and Health - an Economic Analysis, published earlier this year, the researchers looked at a range of evidence and data and estimated that the annual NHS costs associated with poor housing conditions in Scotland were around £530 million (ranging between £433 and £674 million). The researchers estimated that a one-off cost in the region of £7.7 to £8.7 billion would be needed to address hazardous housing conditions across Scotland, however, these data are only estimates due to limitations in data sources available.
Why investment in good housing makes sense
Improving housing quality requires financial investment, but the evidence suggests that many interventions are likely to be cost-effective, or cost saving, by helping to reduce future demand on NHS services.
Areas of investment, that are considered the most effective are those that focus on supporting and expanding retrofit and insulation programmes, particularly programmes that target households with elderly, low-income, and medically vulnerable groups.
Investing in good quality housing is a practical example of upstream prevention in action. It supports better health, reduces health inequalities, and in turn prevents the need for avoidable healthcare treatment. That’s why improving housing is recognised as an early action within Scotland’s Population Health Framework.
By working together across housing, health, and local government, we can create warmer, healthier homes that improve wellbeing, reduce fuel costs, and benefit the environment through less generation of greenhouse gases. Ultimately, improving our housing has benefits for people, public finances and our planet.
Find out more about at Scottish Housing Day 2026 – Healthy homes, healthy futures
View the PHS Healthy Housing for Scotland report
View the Housing Quality and Health – An Economic Analysis report